Pulsar Capital (prop trading firm)

Hello

Im not sure if this is the correct forum to post this thread in but ill give it a shoot!

I was googeling around last night and came across a thread which dIscussed a prop trading company named Pulsar Capital Limited.
Unlike most prop firms they are quite open with thier rules and guidelines but what strikes me as a major scam is thier way of capitalize their traders.

Process to become employed by the firm is the following:

You pay a fee of $299, the reason for this they state is to repel nonserious traders, some people in the thread found it fishy but i guess its legit for the reason.

You are then going to trade 20 days of 25 with a max intraday drawdown at 2%. Minimum profit after finishing the simulation is set to 4% and you are not allowed to keep positions over night (weekends if you trade forex).


Now, this sounds kinda on the level to me, the 2% max drawdown might seem a bit harsh but i can live with that.
Upon completion you are given a initial capital of USD 150.000. max drawdown is lowerd to 1,5% and this is were i get highly confused, im so surprised that iam the only one in that thread!

For every USD 1000 profit you earn, pulsar capital will extend you trading capital with $40.000! I.e if you make $1000 profit = $151.000 + $40.000 = $191.000.

I made a chart of what would happend if you manage to gain 1% over 5 days.

(Day) (Capital) (Cap after PnL) (Added cap upon the days PnL) (End of day cap)
Day 1 150.000 * 1% = 151.500 (1500 profit = 40.000) + 40.000 = 191.500
Day 2 191.500 * 1% = 193.415 (1915 profit = 40.000) + 40.000 = 233.415
Day 3 233.415 * 1% = 235.749,15 (2334 profit = 80.000) + 80.000 = 315.749,15
Day 4 315.749,15 * 1% = 318.906,64 (3157 profit = 120.000) + 120.000 = 438.906.64
Day 5 438.906.64 * 1% = 443.295,70 (4389 profit = 160.000) + 160.000 = 603.295,70

I have never had any insight in prop/investment firms/banks way of capitalizing traders or the amounts, but this cannot be correct, can it? theres a few people in the thread that had tryed the simulation but never made it through, although they said the impression of the company was very proffessional.

whats you thoughts, am i missunderstading something, is it a scam or is there companies who are willing to through this amount of capital on successful demo traders? note that they do not have a trading floor, this to reduce costs and they do not tutor or provide any sorts of mentoring either which means you have even less contact with them.... scam? whtas your thoughts?

http://pulsarcap.com/our_approach/trader_guidelines

That is only the buying power you get. They do not grant leverage - you have a 150K buying-power you can only trade 150K EUR/USD, so its not that spectacular. You could do the same with a small retail account and keep all of the profits (although of course keeping the downside risk too).

With the amount of leverage you get in retail fx, i dont see the point. I'd rather keep 100% of the profits.

hmm, still feels like i am missunderstading the whole thingy...
for example:
i have $200.000, i make a profit of $20.000, according to PC the split is 70trader/30pc.
first off, am i entitle to $14.000? (just to make sure i havnt missunderstood it)

second,
if thats the case you would need 140k of your own capital to achive the same return of 10%

...so the conclusion is that it might not be a bad idea to trade for a prop firm if your undercapitalized?

How about the rapit gain in capital provided, is it legit to get 40k for ever 1k?? there must be a cap?

Well, not really. You are entitled to keep 70% of the profits at the end of the month. What strikes me as fishy about this firm is that there is no information whatsoever on when they give you the boot.

Edit: btw, subscription fee is 300 GBP, not 299$.

If you have a $200K "account" you are only allowed to trade 2 lots of eur/usd. That means you need to make 1000 pips to make 20K of profits, and you will keep only 14K. You can do the same with a 5K retail account(IF you can), especially considering their max drawdown constraints. And keep 100%.

Basically, if you meet their max DD and profit requirment on a consistent basis, you are an excellent trader and i see no reason at all to share any profits. You will easily make it on your own, even on modest accounts.

really i agree 100,000 trading currency pairs is not enough to make 4k in profit ,then again could get lucky , i think if u could use 150,000 ,scaling in and out with 3 positions of 50 would be fairly possible and u only need a small acccount to do that maybe 3 to 5 grand depending on leverage and trading the entire account max would be dangerous so say another 5 or 6 k to be safe u could trade 200 k max at times cautiously with tight stops, maybe stand a chance to pull a 4k or so.

The catch is that you are trading OPM... not yours... I think is a good plus...

When you trade $150.000 with E7 for instance, you only use a small amount of it for margin. (futures margins are 1/17-20, but they oblige you to use 1/1 cash), so what they do?
They use the remaining money to hedge your trades probably or other uses.

As I understand this, for FX. $150k offered is equivalent to me trading a $3k account with 50:1 leverage. Not sure I see the point of paying $450 for the privilege...

You pay the $450 but it's given back to you when you pass the demo phase.
So, it's actually free when you succeed.